Silver price turned indecisive on Tuesday amid speculation that the Federal Reserve could slashed interest rates at its September meeting.
The coupon on the US 10-year note fell one and a half basis points (bps) to 4.288%, while the US dollar index fell below 105.00, 0.06%.
In his appearance at the US House of Representatives, Fed Chair Jerome Powell repeated most of his remarks revealed at a US Senate committee on Tuesday. He acknowledged the progress on inflation, yet Powell stated the board is not confident that lowering rates will help prices reach the 2% goal.
With Fed Chair Powell’s semi-annual testimony in the rearview mirror, investors eye the release of US June inflation figures on Thursday. That, Initial Jobless Claims and the University of Michigan Consumer Sentiment data will set bullions direction. Markets see an over 70% chance of a Fed rate cut in September, with a second reduction almost fully priced in for December.
Meanwhile, silver could push even higher on expectations of a wider supply deficit in 2024 following three straight years of shortfalls, driven in large part by robust demand from the solar sector.
Technical Outlook : Silver Price
Silver prices traded indecisive yesterday and after swinging in between the gains and losses settled at 92832, down 0.15%, compared to the previous day’s close of 92969.00
Cluster of indecisive candle stick on the chart is till indicating for an indecisiveness in a near future. Further, momentum indicator RSI is not giving any clear direction. Hence, its expected that prices could extend the recent direction.
On the upside, massive resistance is seen at 94220 above it only prices could jump towards 95000-95850.00. on the downside, below the crucial support 91900 prices could retreat towards 90700-89800.00
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Commodity Samachar
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